Market failure

THOSE WHO argue that market mechanisms will be sufficient to solve Britain's growing shortage of science and engineering graduates should take a close look at the United States. If a free market in graduates was, indeed, a sufficient solution, then in the US - where such a market is to be found in its most developed form - the future supply of such individuals should be of little concern. As it is, the US is facing the prospect of a crisis in graduate supply almost as dramatic as that predicted for Britain. In both countries, urgent action is needed by government to minimise the damage which this crisis could cause.

One problem is receiving particular attention across the Atlantic. Last week, the US was urged to introduce a new multimillion-dollar graduate fellowship programme in order to combat a growing shortage in the supply of PhDs that threatens its universities and ...

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